Accounting can sometimes be a time-consuming task for many small business owners, although it’s necessary for tracking, managing, and optimizing a business’ growth over time. As time goes by, the need of investing in a small business accounting software to manage all cash flows and tax preparation arises. From invoicing to bookkeeping to tracking expenses, there’re many aspects to be considered in selecting the best software for your needs. However, the selection is important because it simplifies all small business finances. Below are the top small business accounting tools:
1. Quickbooks Online
It’s considered to be a standard tool when it comes to small business accounting and bookkeeping. It offers many features and functionalities that most businesses require in running their day to day operations. Some of the tasks that Quickbooks perform include invoicing, inventory tracking, payroll, expense tracking and managing all bills from suppliers and vendors.
If you connect your bank account to Quickbooks online, the account activity is downloaded and then categorized in Quickbooks which saves time that could be taken to reconcile and compare all records with the actual account activity.
2. Freshbooks
It’s a popular invoicing solution that has built-in time tracking and expense management features, and also the ability to accept the payments from different clients. However, this makes it suitable for agencies, freelancers as well as other service based businesses that can automate payment reminders to all customers. Additionally, Freshbooks is user-friendly, provides good customer support when you need it, and also it’s a good choice for those selling services rather than products.
3. Xero
It offers a wide range of accounting tools that help in bookkeeping, paperless expense management and also the ability to receive payments in more than 160 currencies with automated conversions and exchange rates that are updated hourly. This tool also allows one to send invoices and quotes and also automatically reconciles your accounts as expected from good accounting software. If you’re selling products online or offline, then Xero will help you in tracking inventory and making purchase orders to suppliers on relatively affordable plans.
4. Zoho Books
It’s part of the Zoho collection of small business software which includes a CRM, help desk as well as booking applications. So, if you’re planning to use or you’re already using it right now, and particularly their CRM, then it makes sense to use their finance software too. It has all features expected from bookkeeping software, in addition to time tracking among other perfect features for service selling and not just products.
5. Sage One
For all small business owners, Sage One should be on the top list of their accounting tools list. For beginners, they can generate invoices and accept payments online at a much affordable rate of $9 per month. For those who need more functionality, then they can upgrade to Sage One Accounting at the rate of $14 a month in order to get a business’ financial overview, build accounting reports and also track both time and expenses.
In conclusion, these are some of the top small business accounting tools to choose from depending on your specific needs.
